About Shivashrit Foods Ltd - SME IPO
Shivashrit Foods Ltd, based in Aligarh, Uttar Pradesh, is a prominent manufacturer, supplier, and exporter of premium-grade potato flakes. Operating since 2017, the company specializes in producing high-quality potato flakes used in ready-to-eat meals, snack foods, and processed food products, catering to both domestic and international markets. With a modern processing facility capable of handling 28.8 metric tonnes daily, Shivashrit enjoys strategic advantages from its location in a major potato-growing region, ensuring consistent quality and supply efficiency. The company operates under B2B brands Shivashrit and Flaker’s and recently entered the B2C segment with its premium retail brand, Shree Aahar, targeting urban consumers via e-commerce platforms. Shivashrit Foods Ltd holds important certifications like ISO, HALAL, and FSSAI, reinforcing its commitment to global food safety standards.
READ DRHP HERE:|SHIVSASHRIT FOODS|NSE|
IPO Details
| Key Points |
Information |
| IPO Price Band |
₹135 – ₹142 per share |
| Minimum Lot Size |
2,000 shares (about ₹2,84,000) |
| Issue Size |
Approx ₹70.03 crore (fresh issue ₹61.29 crore + offer for sale) |
| Face Value |
₹10 per share |
| Stock Exchange |
NSE SME |
| Registrar |
Maashitla Securities Pvt. Ltd CLICK HERE |
| Book Running Lead Manager |
Mark Corporate Advisors Pvt. Ltd |
| Offer Structure |
QIB - up to 50%, Retail - up to 35%, NII - up to 15% |
IPO Timeline (Important Dates)
| Event |
Date |
| IPO Opens |
22nd August 2025 |
| IPO Closes |
26th August 2025 |
| Allotment Date |
28th August 2025 |
| Refund Date |
29th August 2025 |
| Shares Credit to Demat |
29th August 2025 |
| Listing Date |
1st September 2025 |
What is the Money Used For?
- Capital expenditure for the expansion project (around ₹26.93 crore)
- Working capital requirements for the expansion project (around ₹19 crore)
- General corporate purposes to support the company’s business
Key Financials (₹ Crores)
| Financial Metric |
FY23 |
FY24 |
FY25 (Projected) |
| Revenue |
45.61 |
77.55 |
105.85 |
| Profit After Tax (PAT) |
1.52 |
11.61 |
12.06 |
| EBITDA |
4.95 |
19.87 |
23.10 |
| Total Assets |
48.48 |
83.07 |
108.78 |
| Net Worth |
10.93 |
22.54 |
34.60 |
| Total Borrowings |
22.67 |
36.97 |
47.96 |
Analysis of Financials
- Revenue has more than doubled from ₹45.61 crores in FY23 to ₹105.85 crores projected in FY25, showing healthy business expansion.
- Profit after tax has grown sharply from ₹1.52 crores in FY23 to ₹12.06 crores projected in FY25, indicating significant improvement in earnings.
- EBITDA increased from ₹4.95 crores (FY23) to ₹23.10 crores (FY25 projected), reflecting operational strength and margin improvement.
- The company’s borrowings have increased to support expansion, which is a risk if cash flows do not maintain.
- The company’s net worth has grown steadily, showing stronger financial health.
Why Some Investors Like This SME IPO
- It operates in a growing FMCG segment with export potential.
- Exhibits strong revenue and profit growth in recent years.
- Clear plan for using IPO funds to expand and strengthen operations.
Points That needs caution:
- Higher borrowings increase financial risk.
- Profitability depends on the supply-demand and raw material prices in the potato flakes and processed food market.
- Market and regulatory conditions affecting the FMCG and food processing sectors can impact the company’s business.
Frequently Asked Questions (FAQs) About SME IPOs
What is an SME IPO?
- An SME IPO is when a small or medium business sells shares to the public for the first time on a special exchange for small companies.
Who can invest in SME IPOs?
- Anyone with a demat account and PAN card can invest. Minimum amount is usually around ₹1 lakh or more per lot.
How is an SME IPO different from a normal IPO?
- SME IPOs are for smaller companies and get listed on SME platforms—mainboard IPOs are for bigger companies. SME IPOs have easier rules, smaller issue sizes, and higher lot sizes.
What are the benefits of investing in an SME IPO?
- You can invest in high-growth companies early.
- Potential for better returns if the company does well.
- Helps support small businesses in India.
What are the risks of SME IPOs?
- Smaller companies, so higher risk.
- Less information and history available.
- Shares may not be easily sold/less liquidity.
What is the minimum investment amount?
- Minimum application is usually ₹1 lakh. Higher than normal IPOs.
Where are SME IPOs listed?
- On dedicated platforms like NSE Emerge or BSE SME, not on regular exchanges.
What is market making in SME IPOs?
- Merchant bankers keep buying/selling shares for 3 years after listing to ensure liquidity.
Do SME IPOs have grading?
- No, IPO grading is not compulsory for SME IPOs.
What is underwriting in SME IPOs?
- 100% underwriting is required, meaning merchant bankers guarantee share sale.
How do I apply for an SME IPO?
- Open a demat account, go to your broker’s IPO section, pick the SME IPO, choose lots, enter UPI, approve payment, and wait for allotment.
How are shares allotted?
- If more people apply than shares available, a lottery decides who gets shares.
- Unsuccessful applicants get their money back.
What are capital gains tax benefits?
- Listed SME shares have lower capital gains tax rates than unlisted shares, if Securities Transaction Tax (STT) is paid.
How often do SME companies publish results?
- SME IPO companies publish half-yearly results, not quarterly.
Can I sell SME IPO shares immediately after listing?
- Yes, you can sell SME IPO shares once trading starts, but check liquidity.
What is the lot size in SME IPOs?
- Lot size is usually much bigger—single application may cost ₹1 lakh or more.
What happens if I only have an odd lot?
- Odd lot shares can only be sold to market makers on exchange, with a special declaration.
What documents are required for an SME IPO listing?
- Annual reports, audited financials, detailed disclosures, company conversion to public limited, compliance officer, independent directors, website, and legal checks.
Are suspended companies allowed on SME Exchange?
- No, only after suspension is revoked and trading is allowed on the main exchange.
1 Like